Norges Bank

June 23, 2016

Norway’s benchmark central bank interest rate was held at 0.50%, but a statement released after the latest Executive Board meeting said a further cut remains possible.  The rate was cut by 25 basis points in March, as well as June and September of last year.  There were also two such reductions in 2014 and a 50-bp reduction in December 2011.  Officials released a statement that had these words about the economy.

Growth in the Norwegian economy is likely to remain weak in the coming period, even though the upswing in oil prices may reduce uncertainty and push up demand somewhat. Should the rapid rise in house prices persist, household vulnerabilities may increase. Inflation has for a period been higher than 2.5%, but lower wage growth and a somewhat stronger krone will weigh down on inflation ahead.

Copyright 2016, Larry Greenberg.  All rights reserved.  No secondary distribution iwhtout express permission.



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